buying your dream home… · motivated by a desire to change your present circumstances, whether...

Buying Your Dream Home… Buying Your Dream Home…

What happensWhat happens when you get professional,when you get professional,

well well--educated, higheducated, high--levellevel Purchasing representation?Purchasing representation?

Your dreams and desires become reality.Your dreams and desires become reality.

And the result?And the result?

Your Dream Home…Your Dream Home… BOUGHTBOUGHT!!

The Orlando Avenue Top TeamThe Orlando Avenue Top Team Keller Williams® Realty at the Lakes/CelebrationKeller Williams® Realty at the Lakes/Celebration

215 Celebration Blvd., Suite #500215 Celebration Blvd., Suite #500 Celebration, FL 34747Celebration, FL 34747

Phone: 407Phone: 407--962962--4242 Toll Free: 14242 Toll Free: 1--800800--962962--42424242 Fax: 407Fax: 407--962962--42414241

EE--mail [email protected] mail [email protected]

Internet: http://www.orlandoave.comInternet: http://www.orlandoave.com http://blog.orlandoavenue.comhttp://blog.orlandoavenue.com http://www.flhousesales.comhttp://www.flhousesales.com

http://www.talkrealty.com/teriisnerhttp://www.talkrealty.com/teriisner


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Table of Contents Pages

Introduction ......................................................................................................................... 3

Meet The Orlando Avenue Top Team ................................................................................ 4

The Right Choice to Represent Your Interests ................................................................5–8

Discovering What’s Important to You .............................................................................9–15

How the Search for Your Home Unfolds ........................................................................16–20

Important Decisions in Buying .......................................................................................21–27

Preparing to Buy—The Financing Process .....................................................................28–29

Your Closing Costs—Worksheet for Calculation ............................................................30–32

Helpful Tips on Finding Your Home................................................................................33–36

Important Points With Home Inspections......................................................................37–39

Our Reputation Depends on Clients Like You...............................................................40–42

Moving-Preparation Checklist ........................................................................................43–51

Service Providers to Accommodate Your Needs...........................................................52–53

Glossary of Terms............................................................................................................54–63

The Orlando Avenue Top Team ........................................................................................64–








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Dear Prospective Client, Thank you for choosing The Orlando Avenue Top Team to represent your interests regarding your real estate needs. We are looking forward to counseling with you further to explore how we can best support you in achieving your real estate goals. Every move is motivated by a desire to change your present circumstances, whether you are moving into your first home, moving up, downsizing, or moving out. It is our mission to assist you in achieving your objective as smoothly and successfully as possible. This book is designed to prepare you for the many critical decisions that come with purchasing a home. We believe it is important that you have a full perspective of the process and know what questions to ask. Our intention is to demonstrate to you the value of superior service in one of the most important decisions in your life—purchasing a home. Thank you for the opportunity to work with you. It is our pleasure to be of service! Teri Isner The Orlando Avenue Top Team

IntroductionIntroduction








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Meet The Orlando Avenue Top TeamMeet The Orlando Avenue Top Team

Teri Isner, Team Leader, Buyer/Listing Specialist

Teri is licensed in the State of Florida as a Broker and has been in Real Estate Sales for over 15 years, helping hundreds of families find their homes in the Orlando area. She is a Certified In-ternational Property Specialist and lived in England for over 18 years. She has talked nationally on industry technology with the Allen Hainge Cyberstars and believes in the high tech…high touch approach to providing the best service. Email: [email protected]

Tricia Schneider,and Colleen Kulikowski are our Buyer and Listing Specialists Tricia and Colleen also help out our team. When working with buyers, they promise never to try and “Sell” you a home, but will help you “Buy” the home that fits your needs.

Shawn Harris Technology Specialist Shawn is our “Team Techie.” He helps us with the hardware and the software of our business. Shawn keeps us up to date with the latest in technology.

Tyler is our Closing Coordinator Tyler reviews and tracks transactions from contract to closing. He ensures all the terms of the contract from inspections to surveys are complete!

Helena Morrissey, Client Care Specialist and Closing Coordinator Helena has a customer service background and always goes above and beyond to help our cli-ents. She is the one who will keep in touch and answer your questions along the way!

Alice Schultze is our Virtual Assistant Alice helps with marketing and jobs online including working on our blog!

Our team adheres to a Standard of Excellence that guides our customer service and is the criteria for all team members. Each member of the team strives to ensure that every transaction is “hassle-free.”

Teri Tricia Colleen Shawn Tyler Helena Alice Team Leader Buyer and Listing Specialists Techie Closing Coordinator Client Care Virtual Assistant


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The Right ChoiceThe Right Choice to Representto Represent

Your InterestsYour Interests


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Buyer Representation—How We Can Help Question: Do home buyers need the help of a Buyer Representative? Answer: You bet! Because when buyers work with a real estate professional who is

100% loyal and completely committed to them, chances are that the entire home-buying process will go smoothly, with a higher level of buyer satisfaction.

Question: What is a Buyer Representative? Answer: A Buyer Representative works solely for you and has no legal or other

responsibilities to the seller.* When working with a Buyer Representative, you have the advantage of personal representation, independent counseling, loyalty, confidentiality, and trust. On the other hand, while helping you present an offer and then negotiate and close a transaction, a general real estate agent has certain fiduciary responsibilities to the seller and agent of any property you choose.

*In a case where the property your agent is representing you to buy is also that agent’s listing, dual agency applies. Talk to your agent for more information.

Question: Can a Buyer Representative show us the same properties? Answer: Yes, a Buyer Representative can show you every home listed in the

REALTOR®’s Multiple Listing Service (MLS), PLUS Real Estate Owned (REO) and For Sale By Owner (FSBO) properties. Additionally, a Buyer Representative can show you builder models to select your own, brand-new properties and unlisted homes.

Question: Will a Buyer Representative disclose more information to us? Answer: Yes indeed. Because a Buyer Representative’s fiduciary responsibility is to you,

he or she can be more forthcoming with any negative aspects about properties that you are investigating for purchase.

Question: Does a Buyer Representative make decisions for us? Answer: No. As your personal ally, advocating your best interests, a Buyer

Representative is obligated to provide you with maximum information about buying a home, each step of the way. That means disclosing specifics about location, property values, offering price, negotiations, counteroffers, contingencies, financing, and the entire closing process. Armed with such vital and detailed information, you’ll be thoroughly prepared to make decisions that are right for you and your family.

The Right Choice to Represent Your InterestsThe Right Choice to Represent Your Interests


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Buyer Representation—How We Can Help Question: What about negotiating the details? Answer: First, a Buyer Representative is fully qualified and highly skilled in the back-and-

forth negotiations and financing queries that precede the closing of most real estate transactions. Second, a Buyer Representative is also experienced and committed to helping protect your best interests in the purchase. Representing you and supporting you: That’s a powerful combination!

Question: What did you mean by “confidentiality”? Answer: Since a Buyer Representative is legally obligated to only you, he or she can help

you maintain absolute privacy with regard to financial and personal information. That’s another important benefit of working with a qualified Buyer Representative.

Question: A few more questions? Answer: We can give you more details and answer all of your questions. Please jot them

down here, so you can come back to them. Your Question: ? The Answer: Your Question: ? The Answer: Your Question: ? The Answer:



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Benefits of Working With Us to Buy a Home Acquiring real estate is a complex business. Mistakes can literally cost you thousands of dollars or the missed opportunity of owning the home of your dreams. As a buyer, you are always in competition with other buyers who also are looking to buy their dream homes. There is a vast difference in the level of expertise and quality of service provided by real estate agents. Give yourself the advantage of working with the very best—work with us and get these value-added services that will make a big difference for you! A Highly Trained Buyer Representative: who focuses on finding the ideal home for you. We are fully committed to you throughout the entire buying process; our sole career is real estate. A Computerized Tracking System: that instantly alerts us about properties that come on the market and meet your needs. Through our sophisticated computer search system, we will constantly alert you to properties that meet your requirements as they hit the market and before most other real estate agents and their buyers even know about them. The Largest Inventory of Homes for Sale: We give you access to ALL listings, not just those on the Multiple Listing Service. We research new construction, contact For Sale By Owners, explore potential relocation clients, and stay abreast of clients who may be considering selling their homes but haven’t put them on the market yet. Expert Negotiation Skills: We have helped 100 families move in the past year; the average real estate agent sells less than twelve properties a year. This level of success is a testimonial to the expertise and negotiating skills that give our clients a major advantage over buyers working with other agents. A Highly Trained Team of Specialists: who work together as a cohesive unit to make









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DiscoveringDiscovering What’s ImportantWhat’s Important

to Youto You


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Discovering What’s Important to YouDiscovering What’s Important to You

15 Things Every Buyer Should Know Before Purchasing 1. Property taxes and qualified home interest are deductible on an individual’s federal income tax

return.

2. Many times, a home is the largest asset an individual has and is considered one of the safest investments available.

3. A homeowner can exclude up to $500,000 of capital gain if married filing jointly or up to $250,000 if single or married filing separately. The home must have been the taxpayer’s principal residence for the previous two years.

4. A portion of each amortized mortgage payment goes toward the principal, which is an investment.

5. A home is one of the few investments you can enjoy by living in it!

6. The majority of the time, a REALTOR® can show you any home, whether it is listed with a company or a builder or is even a For Sale By Owner.

7. Working with a REALTOR to purchase a For Sale By Owner property is very advantageous, because someone will be looking out for your best interests.

8. A real estate professional who can provide you financial information with a computer will give you a distinct advantage in making the right decisions.

9. A pre-approved program will actually approve you for a specific loan amount subject to the property. This will give you confidence and will help when negotiating with the seller.

10. Your real estate professional can provide you with a list of items that you’ll need to make a loan application, so you’ll be ready when the time comes.

11. The right to conduct a property inspection, included in your purchase agreement, gives you the ability to negotiate with the seller once you know all the facts about the property’s condition.

12. A Home Protection Plan can provide coverage for selected items, such as central heat and interior plumbing, built-in appliances, water heaters, etc. If the seller is not providing this coverage, you can purchase it yourself.

13. Ask your real estate professional if he or she is familiar with the neighborhoods you want to live in. Ask how many homes he or she has sold in those areas in the past year.

14. Working with a REALTOR who has an office “team” helps assure the buyer that the transaction will be handled smoothly.

15. In a “seller’s market,” don’t go looking for a deal. Set your sights on the right house for you, and then let your REALTOR help you negotiate the best price and terms.


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Preparing to Purchase Your New Home The following are important steps to take before looking at homes: Before you begin the home-buying process, find out from your lender the largest amount for which you can qualify for to purchase a home. You can always choose to spend less. It is very easy to become excited about features found in homes out of your range. Please see our section on The Financing Process for additional information on obtaining a loan. Complete the list below. Please take a moment to decide what features are “Must Haves” (location, number of bedrooms or bathrooms, garage, etc.) and which features are “Wants” (fireplace, den, spa, split floor plan, etc.). When you meet with us, we will talk with you regarding the features you are looking for in your home. Use this list as a point of reference for your meeting. Oftentimes, people change their minds regarding what they are searching for. Please make sure to let us know if any of your parameters change during the searching process. That way, we can better serve you and help you find the home that meets your criteria sooner.

The Top Features I Want in My Home! I must have the following in my new home: 1. 2. 3. I’d like to have the following in my new home, but they aren’t necessary in order for me to buy the property! 1. 2. 3. I would like to stay within the following areas: 1. 2. 3. See the following page for specific items if you’re finding challenges in listing features.



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Personal Buyer-Profile Sheet Name(s): Date:

Address:

City: State: ZIP:

E-Mail:

Telephone: Home: Work:

Number of people in household?

Children’s names and ages (if applicable) : Which of the following are important to you in this home purchase? (Check all that apply.) Community Services Child-care services available YMCA/park-district facilities Churches High-quality healthcare

Convenience Close to present or future jobs Near grocery and other stores Parks/play areas Easy freeway access

Neighbors Relatives/friends in the neighborhood Children for your kids to play with Active community groups

Home Requirements Home style (please elaborate): Age of home: Number of bedrooms: Number of bathrooms: Price range: Finished square footage: Pool Other:



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Purchasing New Construction Why should I use an agent to purchase a new-construction home? The advantages of having us help you purchase a new home are the same as those for purchasing a resale home. We can provide you with valuable insight into the new construction industry, help you find the perfect home quickly, and then provide you with expertise in contract writing, negotiation, and closing assistance. The builder has a professional real estate representative who watches out for his or her best interests, and you need and deserve the same expert representation watching out for yours. Buying a new home is a little more difficult and time-consuming than buying a resale home. We can professionally guide you through this process. Having spent years working with builders, The Orlando Avenue Top Team has a rapport with them and a database of information about subdivisions, floor plans, etc. The Orlando Avenue Top Team is also very familiar with new home warranties and the nuances of the builder’s purchase contracts and various home inspections. It is very important that your interests be professionally represented when you are entering into a contract for a semi-custom or a build-to-suit home. These transactions are complex and the contract details must be exactly in order to protect you and to ensure that you get exactly the home you want! And when it comes to the home inspection, we will explain to you why it is essential to hire an independent home inspector to thoroughly inspect a newly constructed home. Are there any advantages to not using an agent to purchase a new home? There is no financial advantage for you to buy directly from the builder. Builders have a “single price” policy, meaning that you will be charged the same price whether your interests are represented by an agent or not. Just as in any resale, the seller pays your agent’s fee. Most builders will make you give up your right to representation if you visit their model homes without an agent on the first visit. Therefore, please call us if you would like to look at some model homes, so you are given the representation you deserve!








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The Real Cost of Renting

Based on a 6% Rental Increase Each Year, If You Now Pay…


$600/month

$700/month

$800/month

$900/month

$1,000/month

$1,200/month

$1,400/month

$1,600/month

This year $7,200 $8,400 $9,600 $10,800 $12,000 $14,400 $16,800 $19,200

Next year $7,632 $8,904 $10,176 $11,448 $12,720 $15,264 $17,808 $20,352

3rd year $8,090 $9,438 $10,787 $12,135 $13,483 $16,180 $18,876 $21,573

4th year $8,575 $10,005 $11,434 $12,863 $14,292 $17,151 $20,009 $22,868

5th year $9,090 $10,605 $12,120 $13,635 $15,150 $18,180 $21,210 $24,240

6th year $9,635 $11,241 $12,847 $14,453 $16,059 $19,270 $22,482 $25,694

7th year $10,213 $11,916 $13,618 $15,320 $17,022 $20,427 $23,831 $27,236

8th year $10,826 $12,631 $14,435 $16,239 $18,044 $21,652 $25,261 $28,870

9th year $11,476 $13,389 $15,301 $17,214 $19,126 $22,951 $26,777 $30,602

10th year $12,164 $14,192 $16,219 $18,246 $20,274 $24,328 $28,383 $32,438

TOTAL $94,901 $110,721 $126,537 $142,353 $158,170 $189,803 $221,437 $253,073

Think about the home you could have purchased using that money. Not to mention the potential annual tax deduction for mortgage interest paid!








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Why Buy? Renting Versus Buying Your Home

Pride in Owning: Most people buy homes to have control over where they live. Although investment

features are important, the psychological reasons for buying—the satisfaction of owning and freedom from paying rent—are at least as important.

In a survey done by the National Association of REALTORS® of 6,000 homeowners and 2,000 renters—perhaps the largest survey ever of attitudes toward home ownership—it was shown that 76% of owners and 66% of renters considered pride of ownership an important reason for buying.

Dislike Paying Rent: Close to 7 in 10 of almost equal portions of owners and renters expressed a

dislike of paying rent as an important reason to buy. Renting offers a lifestyle that’s nearly maintenance-free. That may appeal to you, but consider that renting offers you no equity, no tax benefit, and no protection against regular rent increases. Writing a rent check is just like watching your hard-earned money sail away!

Settling Down: More than 6 in 10 renters said “settling down” was an important reason to buy. Good Investment: 76% of owners and 69% of renters said that the investment aspect of ownership

was important. Tax Advantages: Property taxes and qualified home interests are deductible on Schedule A, for

itemized deductions. Long-Term Appreciation: People consider homeownership a good investment because they view it as

a long-term venture. Historically, home prices have risen at relatively steady rates. Existing home prices rose an average of 4% per year between 1980 and 1992.

Leverage Investment: People borrow a great deal to buy homes, yet they receive the full benefits of

price appreciation. In the long run, investments in homes far outpace inflation rates. Source of Savings: Homeownership always has been and continues to comprise the single largest

source of savings for American households. Homeowners build equity and can borrow against it.

Sacrifices Are Worth It: Almost 7 in 10 renters in the National Association of REALTORS

homeownership survey said that they planned to buy a home in the future. More than three-quarters of these people said they were willing to sacrifice to do that.



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How the SearchHow the Search for Your Homefor Your Home

UnfoldsUnfolds


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How the Search for Your Home UnfoldsHow the Search for Your Home Unfolds

Steps in the Home-Buying Process

Get pre-qualified

View homes with us

Select a home

Complete contract to buy

Negotiate any counteroffers

Obtain a home inspection

Negotiate repairs with seller

Submit inspections to loan officer

Complete loan process

Well/septic/as-built appraisal ordered and title

Loan package submitted to underwriting

Possible request for additional information

Back to underwriting

Final approval

Final inspection of home repairs

Obtain fire/homeowners insurance

Documents are drawn by the lender

Documents are sent to the title company

Documents are recorded

Welcome to your new home!


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Step by Step—The Buying Process Find a REALTOR® who you can trust The First Step… Now that you have chosen a specialized buyer representative who you can trust, you have accomplished the first step in the home-buying process. We will make sure that all of your needs are met and will be representing you through the entire process of buying your new home. Getting Pre-Approved An Important Step… We feel an important aspect when starting the process of buying a home is to meet with a lender and get a pre-approval. Your buyer representative can put you in contact with a lender, if you desire, who can give you information about your approval and also explain some of the financing options available to you. Consulting Session Important Information… Your buyer representative will meet you one on one to discuss the features you desire in a home as well as to pin-point the area you wish to live in. The Search Begins The Next Step… Once you’ve established the type of home you’re searching for, it’s time to start looking. Your buyer representative is available, by appointment, to help you find your dream home. Your Offer Be Careful—This Is a Big Step… When you find your dream home, you should present a competitive offer immediately. Your buyer representative has extensive experience in contract negotiations; he or she will ensure that you get the home you want for a fair price—a transaction in your best interest. The Accepted Offer We’re Starting to Jog Now… When the seller accepts your offer, you will have what we call a pending offer. You want to make sure that every detail is handled accurately and immediately. We will ensure that your home closes properly and on time. Inspections You’re on the “Home” Stretch!… Final details are handled and inspections are performed to ensure that the property is “perfect” for you. Contract details are further negotiated and we head to closing! Signing the Loan Documents Finalizing the Lender’s Commitment… Be prepared to bring your cashier’s check, insurance binder, and driver’s license to the closing. The next steps you take will be into your new home! Now the Home Is YOURS! You are Finally Home… After the deed is recorded and a possession date is decided upon, pick up the keys and move into your new home!



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Buyer-Notification System

Searching for properties that match your criteria.

Notification by mail or e-mail.

A systematized buyer process to save you time.

A team of trained professionals who work for and with you.

Once we have your criteria,

we search the Multiple Listing Service daily to find properties that match that criteria.

Once a match is found, we send the data sheets for that property to you,

either by e-mail or postal mail. This allows you to look at properties on your time and to review all of the details of each property.

We are available via our Web site, so you can easily send us an e-mail if you have any questions

or would like to make an appointment to see a specific property with your buyer representative.



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Estimated Time Chart The following timetable has been suggested to give you an idea of the timing of the different events in the home-buying process. It is meant to be a guide and if you have any questions, please ask us. First Week ♦ Deposit earnest-money check. ♦ Make loan application. ♦ Arrange for property inspections. Second Week ♦ Attend property inspections. ♦ Make repair requests to seller. ♦ Confirm that all information requested by the mortgage company has been submitted. Third Week ♦ Confirm that repairs have been completed. ♦ Call to find out if mortgage company needs additional information. ♦ Arrange for mover. Fourth Week ♦ Walk through home to verify completed repairs. ♦ Arrange for cashier’s check for closing. ♦ Arrange for settlement and signing of papers. ♦ Arrange for transfer of utilities. ♦ Arrange for exchange of keys and personal items.



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ImportantImportant DecisionsDecisions in Buyingin Buying


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Important Decisions in BuyingImportant Decisions in Buying

Preferred Buyer Agreement, page 1 of 2 The Orlando Avenue Top Team will be devoting a lot of time and energy to helping you find the perfect home. To provide the type of service that we do requires a huge financial investment on our part and we are working with a very large customer base. We are committed to helping you find the perfect home and we want you to be equally committed to us. That is why we require each of our new clients to sign our Preferred Buyer Agreement. This agreement simply states that when you buy a home in our coverage area, you agree to buy the home through us and not through any other agent. This assures us that we will be compensated for the time and energy that we devote to you and that we will be able to continue setting a higher standard. About Our Team Teri Isner and the Orlando Avenue Top Team have helped 100 families buy homes in the past year alone. When you consider that there are 6,391 real estate agents in the area and 19,472 homes that sold or were purchased, that is important to consider. We have been in the business since 1989, and that translates into valuable experience for you—the buyer. And because we work with so many people, we often get to see new listings before other agents and their clients. We ensure that your transaction is handled in such a way that we help eliminate the stress for you. We are very good at what we do, and we can help you make the move into your new home an enjoyable experience. Because we are so good at what we do, our team of 9 people are working with over 1,100 clients in our database at any given time. Therefore our time is valuable. It takes a lot of energy and effort to help you and our other clients find perfect homes. We concentrate on those clients who we know will buy from us. That’s why we ask you to sign a contract with us stating that if we give you our best effort you will buy from us. While we try to make all transactions as simple and seamless as possible, we have the ability and capability to be as sophisticated as we need to be. We will search diligently for properties that fit your needs. When you are ready to put us to work for you, please sign this agreement. It will be our pleasure to help you find the perfect home. We hope that this answers your questions, but if you have any additional questions at all, please ask.


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Preferred Buyer Agreement, page 2 of 2 We will provide you with the following services: 1. We will arrange a free, no-obligation pre-qualification meeting for you with a foremost lender

to find out exactly how much you qualify to borrow. 2. We will search the Multiple Listing Service for all homes listed by real estate companies to

make sure that you know about every home or building site for sale in your price range. If you want a new home, we’ll find the builder who will build you the most home for the best price.

3. We will arrange private showings for any and all homes you wish to see or we will coordinate meetings for you with the best home builders in the area.

4. We can help you with negotiation and purchases of any For Sale By Owner homes. 5. When you find the right home or builder, we’ll assist you with preparing an acceptable offer

that is in your best interest. 6. We will strategize about the offer price, financing terms, interest rate, and possession date. 7. We will recommend the best services: home inspections, appraisal, home warranty. 8. We will obtain answers to any and all questions you may have. 9. We will present the offer on your behalf to the seller, the builder, the For Sale By Owner, or

the seller’s agent. We will negotiate in your best interest at all times to get you the best deal possible.

10. We will help you find the greatest possible financing. 11. We will work hard to ensure that you receive exceptional service from everyone involved with

your home loan. You agree: 1. To immediately seek pre-approval from a home lender if your pre-qualification goes well. 2. To notify us of any listed homes you wish to inspect or builders you wish to interview. 3. To inform builders, For Sale By Owners, and real estate agents that you are working with us. 4. To make any offer on any home or new construction through us. 5. That you are under no obligation to buy or build a home. 6. That, for all these services, you owe us nothing. Our fee will be paid by the builder or seller on

any home that you purchase or build. 7. That if you choose to purchase a property from another real estate firm, For Sale By Owner, or

builder without using us, then you agree to pay The Orlando Avenue Top Team a fee of 3% of the sales price or $5000 whichever is less, for our time, effort, and services.

This agreement expires one year from today’s date and is applicable only within this area. Buyer’s Signature Date Buyer Representative’s Signature Date Please sign, remove from the book, and present to us at your next appointment.


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Getting Pre-Approved It is extremely important that you connect with a qualified lender. We can recommend lenders who have earned our trust and with whom we’ve had good experiences in the past. The lender will review your financial position to determine the price most suited to your ability to pay and your comfort level. The pre-approval process will help you in the following ways: ♦ You will know in advance what your payments will be. ♦ You won’t waste time considering homes you cannot afford. ♦ You can select the best loan package without being under pressure. There are

many options and programs to choose from in today’s market. Your lender will explain the alternatives to help you select the one best suited for you.

♦ Sellers will find your offer to purchase more favorable if they know in advance of

your ability to secure financing. This will make your offer more competitive if you are in competition with other offers. Nowadays, most listing agents require a pre-approval letter to accompany all purchase agreements.

♦ You’ll have an estimate of your closing costs and we will explain them to you in

detail. ♦ You’ll have peace of mind. Best Piece of Advice Take the pre-qualification one step further and get a full loan approval. This is the best approach!









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Understanding Title Insurance What Is Title Insurance? A Title Insurance Policy is a guarantee by a title company that a thorough investigation of the title to the property has been conducted and that you have been notified of any outstanding claims to the property. The title insurance company reports any defects in the title in the form of a Title Commitment so that these matters can be corrected. It is important that you know of all claims on the property and have them resolved and declared removed prior to you taking title to the property. The Title Commitment will carefully detail what items of encumbrance are not covered by the policy. You can either get these items resolved or bow out of the transaction. Title insurance covers matters that occurred before the policy’s effective date but were discovered later. Your policy will detail what is covered, what is not covered, and the effective date. Title insurance is issued by the title company when they are certain the property is free from all liens, encumbrances, interests, etc., and the insurance guarantees such. This is so the title can be legally transferred to the buyer to be used as security for the lender’s funds. This is why title insurance is required by the lender. Your lender has an interest in knowing that you and the lender are the only parties with claims to the property. The title insurance company thoroughly searches the public records to uncover any unpaid taxes, mortgages, judgments against previous owners, easements, and other court actions or recorded documents that can affect title to the real estate. The insurance also provides protection against any defect in the public record such as forgery, similar names, error in the records, etc., and protests against any undiscovered or unrecorded claims that may arise in the future. When title insurance is issued, the title-insurance company accepts the responsibility for any and all claims on the property prior to your purchase if they do not find the claim or call it to your attention prior to your purchase of the property. That responsibility includes defending your title in court, if necessary (at their expense), or bearing the cost of settling the claim (if it proves valid) in order to perfect your title and keep you in possession of your property. Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments required to keep your Owner’s Title Policy in force. Title insurance protects you twice—it notifies you of claims against the property and insures you against any future claims on hidden items.



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Why Title Insurance Is So Important! To understand why a title search is so important, you must understand the nature of real estate. Real estate has always been considered a person’s most valuable possession. It is so basic a form of wealth that many special laws have been enacted to protect ownership of land and the buildings that stand on the land. The owner who is selling the property has extremely strong rights, as do his/her family and heirs. Also, there may be others who have “rights” in the property you are going to buy. These may be governmental bodies, contractors, or any other individuals who have perfectly proper unpaid claims against the property. Unscrupulous owners may have taken out a second mortgage on the home prior to closing. Anyone who has such a claim in the property you are buying is, in a sense, a part-owner. The property may be sold to you without the knowledge of other parties who have claims against the property. Without a title check conducted by the title-insurance company, you know nothing about such claims at the time you buy. All such claims remain attached to the real estate you are purchasing and not to the previous owners. The title company will notify you of all liens, encumbrances, and interests in the property so that these can be resolved by the current owners prior to the sale. Proof of a “good” title—a title free of any liens, encumbrances, or interests—is important because otherwise you are liable for the claims. Title-insurance policies are standard. Owner’s policies usually do not cover one or more of the following matters (often referred to as “Standard Exceptions”), unless an additional premium is paid and/or extra investigative work or a survey is done and the necessary evidence is furnished to the title company. When the evidence is furnished and the insurance coverage is given, this is frequently referred to as “Extended Coverage.” The Standard Exceptions are: ♦ Claims of people who turn out to be living in the house (such as prior owner’s tenants or

someone living without your knowledge on your property) if their presence there isn’t a matter of public record.

♦ Boundary-line disputes. ♦ Easements or claims of easements not shown by public records. ♦ Unrecorded mechanic’s liens (claims against the property by unpaid home-improvement

contractors). ♦ Taxes or special assessments left off the public record. Other important exclusions from coverage include zoning, environmental-protection laws, matters arising after the effective date of the policy, and matters created, suffered, or assumed by the insured.



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Understanding Your Options for Taking Title Carefully consider how you intend to take title of your property. This will determine your legal status, rights, and obligations to the property. You may want to discuss your options with an attorney to determine which is best for you. Most of the possible ways to take title to your property are listed here. Community Property In a community-property state, there is a statutory presumption that all property acquired by a husband and wife is community property. Some states do not presume community property status unless you acquire title as such. Community property is a co-ownership method for married persons only. Upon the death of a spouse, the deceased spouse’s interest in the property will pass by either a will or interstate succession. Community Property With Right of Survivorship This is a method of co-ownership that allows a married couple to hold title as husband and wife while providing for succession outside of probate upon the death of either spouse to convey or encumber. Both halves of the community property are entitled to a “stepped up” tax basis as of the date of death. Corporation Title may be taken in the name of a corporation provided that the corporation is duly formed and in good standing in the state of its incorporation. General Partnership Title may be taken in the name of a general partnership provided that the general partnership was duly formed according to the laws of the state. A partnership is defined as a voluntary association of two or more persons as co-owners in a business for profit. Limited Partnership Title may be taken in the name of a limited partnership provided that there are one or more general partners and one or more limited partners. A certificate of limited partnership must be filed in the office of the Secretary of State, a certified copy of which must be recorded. Joint Tenancy With Right of Survivorship Joint tenancy is a method of co-ownership that gives title to the real property to the last survivor. Title to real property can be acquired by two or more individuals. If a married couple acquires title as joint tenants with the right of survivorship, they must specifically accept the joint tenancy to avoid the presumption of community property. Sole and Separate Title to real property owned by a spouse before marriage or any acquired after marriage by gift, descent, or specific intent may be taken as sole and separate. If a married person acquires title as sole-and-separate property, his/her spouse must execute a disclaimer deed if the state is a community-property state. Tenancy in Common Tenancy in common is a method of co-ownership in which parties do not have survivorship rights and each owns a specific undivided interest in the entire title.



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Preparing to BuyPreparing to Buy

The Financing ProcessThe Financing Process


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Loan-Application Checklist General: Picture ID with social security number of borrower and co-borrowers. Application fee. Name and complete address of all landlords for the past two years. Income verification as follows: Employment history for the past two years including names, addresses, phone numbers, and

length of time with each company. Copies of your most recent pay stubs and W-2 forms (past two years). Verification of other income (social security, child support, retirement, etc.). If self-employed, you need copies of the past two years’ signed tax returns, including all sched-

ules, and a signed profit-and-loss statement for the current year. Retirees need tax returns for the past two years. If you have rental-property income, bring a copy of all lease agreements.

Assets: Copies of all bank and credit union statements for the past three months. Copies of all stock/bond certificates and/or the past three statements from all investment and

retirement accounts. Prepare a list of household items and their values. Copies of title documents for all automobiles, boats, motorcycles, etc. Face amount, monthly premiums, and cash values of all life insurance policies. (Cash value

may be used for closing costs or down payments. You need documentation from the carrier indicating cash value.)

Creditors: Credit card account numbers, current balances, and monthly payments. Installment loans (car, student, etc.). Same details as for credit cards. Mortgage loans (property addresses, lenders and lenders’ addresses, account numbers, monthly

payments, and balances owned on all properties presently owned or sold within the last two years). Bring proof of sale of properties sold. Child-care expenses/support (name, address, and phone number of provider).

Other: Bankruptcy: Bring discharge and schedule of creditors. Adverse credit: Bring letters of explanation. Divorce: Bring divorce decrees, property settlements, quit-claim deeds, modifications, etc., for

all divorces for yourself and your spouse. VA only: Bring Form DD214 and Certificate of Eligibility. Retirees: Bring retirement and/or social security award letter.

Preparing to BuyPreparing to Buy——the Financing Processthe Financing Process


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Your Closing CostsYour Closing Costs

WorksheetWorksheet for Calculationfor Calculation


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Who Pays for What at Closing? The seller can normally be expected to pay for the following: ♦ Real estate commission. ♦ Owner’s title-insurance premiums. ♦ Half of the escrow fee (except for VA loans, where the seller pays 100%). ♦ Payoff of all loans in seller’s name. ♦ Fees, re-conveyance fees, and prepayment penalties. ♦ Home warranty according to the contract, if any. ♦ Any judgments, tax liens, etc., against the seller. ♦ Recording fees to clear all documents of record against the seller. ♦ Tax pro-ration. This is for any unpaid taxes at the time of transfer of title. ♦ Any unpaid homeowner-association dues. ♦ Any assessments according to the contract. ♦ Any and all delinquent taxes per the contract. ♦ Appraisal. ♦ State real estate tax fee. ♦ Sales tax. ♦ New approval of well, septic, and as-built survey (if required). ♦ Re-inspection fee with appraiser or home inspector (as negotiated in contract). ♦ Half of the document-preparation fee (unless VA or FHA loan; then the seller pays 100%). The buyer can normally be expected to pay for the following: ♦ Lender’s title-policy premium—American Land Title Association (ALTA). ♦ Half of escrow fee (unless you are a veteran and getting a VA loan; then the seller pays 100%). ♦ Recording charges for all documents in buyers’ names. ♦ All new loan charges (except those required of the seller by the lender). ♦ Interest on a new loan from date of funding to 30 days prior to first payment date. ♦ Assumption/change-of-records fees for takeover of existing loan. ♦ Home warranty according to contract. ♦ Fire-insurance premium for the first year. ♦ Home inspection. ♦ Reserve account for taxes and insurance. ♦ Flood-certification fee. There are some mandatory costs: ♦ Both FHA and VA require that the seller must pay for document preparation, tax service, ware-

housing, and loan-review fee (if any). ♦ VA: 100% of escrow closing fee.

Your Closing CostsYour Closing Costs——Worksheet for CalculationWorksheet for Calculation


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Your Closing CostsYour Closing Costs——Worksheet for CalculationWorksheet for Calculation

ESTIMATED PURCHASE PRICE........................................................ ______________ Costs Related to Purchase of Home Homeowners’ title insurance ................................................ ___________ Flood certificate, if applicable .............................................. ___________ Fire-insurance premium for first year ................................... ___________ Reserve account for real estate taxes .................................... ___________ Reserve account for insurance .............................................. ___________ Interest on new loan from closing through end of month..... ___________ Document-preparation fee .................................................... ___________ Recording fees ...................................................................... ___________ Half of escrow fee................................................................. ___________ Loan-origination fees ............................................................ ___________ Homeowner association dues, if applicable.......................... ___________ Home warranty (if applicable) .............................................. ___________ Assumption change-of-record fees, if applicable ................. ___________ Home inspection (typically paid outside of closing) ............ ___________ [Other expense] ..................................................................... ___________ [Other expense] ..................................................................... ___________ [Other expense] ..................................................................... ___________ Subtotal Estimated Expenses ............................................................... ______________ Credits (or costs paid outside of closing) [Credit] .................................................................................. ___________ [Credit] .................................................................................. ___________ [Credit] .................................................................................. ___________ [Credit] .................................................................................. ___________ Total Credits........................................................................................ < _____________ > ESTIMATED CASH TO BRING TO CLOSING.................................. ______________ Prepared for: Prepared by: Prepared on: NOTE: This is an estimate only, and the information herein is deemed to be accurate but not

guaranteed. All estimates are subject to change.


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Helpful TipsHelpful Tips on Findingon Finding

Your HomeYour Home


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Viewing Homes After your initial counseling session (either via e-mail, phone, or a face-to-face interview), The Orlando Avenue Top Team will have a good idea of your wants, needs, price range, and desired location and will enter your requirements in the Multiple Listing Service (MLS) computer. From the many listings in its inventory, the computer will print a list of homes tailored just for you. We will make arrangements to show you those homes that meet your criteria. As you walk through the homes, feel free to open cabinets and closets. Most often, the sellers will be absent, but should they be present, they will understand your need to examine the home carefully. When a home appeals to you, make notes. It is easy to forget details. Often there will be information at the home and, whenever possible, we will have given you a copy of the MLS information on the home you are viewing. Don’t be surprised if the first home you see is the perfect one for you, and don’t be discouraged if none of those you visit the first day are what you want. We are committed to finding the house that you will call home, and we will work diligently until you find it. Usually, we will be able to find the home of your dreams rather quickly from a selection of three to five homes that best fit the desires you expressed. During the Home Search… We will: ♦ Discuss the benefits and drawbacks of each home in relation to your specific needs. ♦ Keep you informed on a regular basis. ♦ Check the MLS database and with other brokers daily for new listings that meet your criteria. ♦ Keep you up to date on changing financial conditions that may affect the housing market. ♦ Be available to answer your questions or to offer assistance regarding your home purchase. ♦ Discuss market trends and values relative to properties that may be of interest to you. ♦ Show you new homes as well as pre-owned homes if you desire. ♦ Assist you with homes offered by the sellers’ themselves as For Sale By Owner (FSBO)

listings. A homeowner who is trying to sell his home himself is usually doing so in hopes of saving the commission. Coincidentally, this is the reason a buyer wants to deal directly with a homeowner. Many times a homeowner will work with an agent, even though his home is not listed, if the agent introduces the buyer to the property. If you should see a FSBO and want the advantages of our services, please let us contact the owner and set the appointment.

As members of the MLS, we can show you any property. If you should see an ad in the newspaper or a sign in a yard, call us to find out the information you’re looking for. If you want to view the home, we’d be happy to show it to you!

Helpful Tips on Finding Your HomeHelpful Tips on Finding Your Home


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Take Notes on Homes You Tour


Home #1 Address: Style of home: Subdivision: Bedrooms: Bathrooms: Living room: Fireplace: Kitchen: Lot: Square footage:

Dining area: Laundry: Additional rooms: Garage: Additional features: Home is near: Comments:






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Take Notes on Homes You Tour









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Important Points Important Points AboutAbout

Home InspectionsHome Inspections


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After Finding Your Home The Home Inspection

It’s easy to make sure that the home you’ve chosen is a smart buy. By having a home inspection, the home’s vital systems are checked. A home inspection allows you to purchase your home with confidence. We will help you schedule an inspection after you have chosen the home you like. The Orlando Avenue Top Team recommends the following minimum standards when choosing an inspector: 1. Membership in ASHI (American Society of Home Inspectors) and adherence to its Standards of

Practice and Code of Ethics. 2. Written report at the time of inspection. Your inspection report should include the following: ♦ Foundations and structures. ♦ Exterior siding, windows, and doors. ♦ Exterior walls, windows, and doors; porches, decks, and balconies; garage. ♦ Roof. ♦ Roof type and material, and condition of gutters and downspouts. ♦ Interior plumbing system. ♦ Hot-and-cold water system, the waste system and sewage disposal, water pressure and flow, and

hot-water equipment. ♦ Electrical system. ♦ Type of service, the number of circuits, type of protection, outlet grounding, and the load balance. ♦ Central heating system. ♦ Energy source, type of cooling equipment, capacity, and distribution. ♦ Interior walls, ceilings, floors, windows, and doors. ♦ Stairways, cabinets, and countertops. ♦ Attic. ♦ Structural, insulation, and ventilation information. ♦ Fireplace. ♦ Notes about the chimney, damper, and masonry. ♦ Garage. ♦ Doors, walls, floor, opener. ♦ Appliances. ♦ Includes a wide range of built-in and other home appliances, smoke detectors, and television/cable

hookups. ♦ Lot and landscaping. ♦ Ground slope away from foundation, condition of walks, steps, and driveway.

Important Points About Home InspectionsImportant Points About Home Inspections


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Home Inspections and Why You Should Obtain One Home inspections are a routine part of nearly every residential purchase, whether a resale or, yes, even a new-construction home. Why, you might ask? Here are a few areas home inspectors look at: Structural: Many home-inspection organizations, such as ASHI (American Society of Home

Inspectors), have set standards on certain areas of the home that the home inspector looks at to determine the integrity of the essential internal and external structural components. Home inspectors are not structural engineers, but they can identify visual defects in areas requiring immediate repairs and will recommend a structural engineer should they feel it is warranted.

Electrical: Do all the outlets work? Are the GFCI (ground-fault circuit interrupters) operational? Is

there any reverse polarity? Is there evidence of double lugging of breakers at the service panel? Any wiring not properly encased? Landscape watering or lighting systems improperly installed?

Plumbing: Are there any leaks or annoying drips? Are there any pipes that are vibrating because they

are not properly secured? Reverse hot and cold taps in bathrooms or kitchen? Are there any toilets not secured to the floor? What about cracks in the shower-tub surrounds? Is the water pressure sufficient? Are there any slow-draining sinks or tubs?

Built-In Appliances: All appliances are tested, including running a dishwasher cycle, testing

microwaves, and checking oven temperatures and burners. Safety Hazards: Some of these items cross over electrical and plumbing and include making certain

hot-water tanks are secured; verifying there is proper ventilation of all systems supplied by natural gas; and testing temperature variations on the furnace, weather conditions permitting.

Miscellaneous: Other items may or may not be included, but should be reviewed by a qualified

professional, such as wells, septic systems, roofs, sufficient sealing of flashings, noting cracked tiles, exposed felt underlayment, adequate attic insulation and ventilation, drainage problems, wood decks, wood-infestation evidence (dry rot), patios, or other exterior structures.

You might question the necessity of an inspection on new construction. However, realize that even though city inspectors have passed certain phases of the construction process and the home has received a certificate of occupancy, there could be numerous small items that may require attention that may or may not surface during the course of homeownership and yet could be a potential structural or safety hazard. Home inspectors provide a unique customer service in identifying existing or potential problems and longevity or life expectancy of many systems in your home. Buyer’s signature below signifies receipt of this notice: Buyer’s Signature Date Buyer Representative’s Signature Date

Important Points About Home InspectionsImportant Points About Home Inspections


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Our ReputationOur Reputation Depends onDepends on

Clients Like YouClients Like You


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“Teri, you are an exceptional real estate professional and we place tremendous value on your advice. We wouldn’t think of working with any other Realtor®”

-Chris and Alesia New

“In the summer of 2001, we decided to search for a summer vacation rental investment home. We initially found you through the Internet and immediately connected with your approach. You showed us the entire inventory available in our price range. We ended up buying a lovely home in a fantastic subdivision. Throughout the offer and negotiation process, it seemed like you were reading our minds because your suggestions were almost exactly what we had decided. This convinced us that you were working for us and that buyers’ agency really works.”

-Martin Walker, England, UK

“Teri, you represented us when we purchased our retirement dream home in Celebration, and when we were ready you helped us find an investment home and one for other family members. We are so happy we found you on the Internet!”

-Ken and Maryetta Pesola Retired U.S. Air Force Colonel

“The best real estate services I’ve ever received—the whole team was exceptionally helpful. Thank for helping us find that perfect home and sell ours. We felt secure in your advice and assistance, as well as your knowledge of the market. We would definitely refer business to you.”

-Patrick and Stephanie Waldron

Our Reputation Depends on Clients Like YouOur Reputation Depends on Clients Like You——Here’s What People are Saying About Here’s What People are Saying About The Orlando Avenue Top TeamThe Orlando Avenue Top Team








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“Thanks for recommending Cindy Hall of Mortgage Solutions to me for the crea-tive financing I needed. This allowed me to qualify for more house than I thought I could afford. I appreciate your patience and willingness to work this out with me, it was really a win win for everyone, and I will definitely recommend you to anyone thinking of buying, selling, or relocating.”

-Julia Clark “Teri, we found you on the Internet when searching for a property. You re-sponded quickly to our e-mail for information. When we came to look, you showed us a property we would have missed without you. We feel so fortunate to have found you!”

-Pam and Larry Gossett

“Your multi-million dollar annual sales record proves that you are the REAL-TOR® of choice -that is why I send my transferring referrals.”

-Jock Barker CRB, CRS

“We really would like to thank you for all your understanding and kindness you showed us in a difficult situation. You knew what a traumatic time it was for my family to be moving from an area we had been in and loved for over twenty years. Thank you for your professionalism, knowledge, honesty, energy and above all else, kindness. Buying and selling with you was easy.”

-Toby and Charlene Wrolson

Our Reputation Depends on Clients Like YouOur Reputation Depends on Clients Like You——Here’s What People are Saying About Here’s What People are Saying About The Orlando Avenue Top TeamThe Orlando Avenue Top Team








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MovingMoving-- PreparationPreparation

ChecklistChecklist


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Moving Timeline and Checklist One month before your move: Arrange for moving your furniture and personal belongings either by hiring a moving company

or renting a truck. Get estimates from several moving companies or truck-rental companies and be sure to obtain a hand truck (appliance dolly) if you’re moving yourself. Gather moving supplies: boxes, tape, rope, and anything else you might need. Plan your travel itinerary and make transportation and lodging reservations in advance if you

are driving to your new home. (Leave a copy with a friend or relative.) Some moving expenses are tax deductible, so you will want to save your moving-expense re-

ceipts (if the move is employment-related) for tax deductions, including meals, lodging, and gasoline. Record expenses incurred during your house-hunting trips. Develop a plan for packing, such as packing last the things you use the most. See page 46. Notify others of your new address: post office, charge accounts, subscriptions, relatives and

friends, national and alumni organizations, church, mail order clubs (books, videos, cata-logues), firms with which you have time payments, and your past employer to make sure that you receive W-2 forms and retirement-account information. Save your old address labels to speed up filling out change-of-address forms for your new address. Notify federal and state taxing authorities or any governmental agency necessary.

Two weeks before your move: Notify and get refunds from your present utilities: gas, electric, water, cable, and phone. Ar-

range for services at your new address. Notify long-distance phone company and arrange for service at your new address. Have your car serviced if you are driving a long distance to your new home. Recruit people to help you on moving day. Arrange for someone to take care of your pets and children during the move. Confirm moving company or rental-truck arrangements

One day before your move: Keep moving materials separate so they don’t get packed until you are finished. Pick up rental truck if you are moving yourself. Fill up your car with gas and check oil and tires.

Moving Preparation ChecklistMoving Preparation Checklist


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Additional Moving-Checklist Items

Decide what to move and what not to move. Possibly have a garage sale (extra cash and less to move). See “Tips on Having a Garage Sale” on the next page. Transfer your bank accounts. Your new bank will be happy to open your account by mail. Contact your local credit bureau to find out if they are on the same system that your new home

town subscribes to; if not, they will be able to transfer your credit file. Request records from doctors and dentists, including eye-glass prescriptions, dental x-rays, and

vaccinations. Obtain your children’s school records to make for an easier transfer. Draw up a floor plan of where your furniture should be placed. This will help avoid confusion for

you and your movers. Pay existing bills and close out local charge accounts. Arrange any special movers, such as may be necessary for an expensive piano or to break down

and move a pool table or above-ground swimming pool. Cancel or transfer deliveries, newspaper, garbage collection, etc. Coordinate the transfer of gas,

electric (water and sewer when not handled by title company) with the next occupant of your old home as well as with the previous owner of your new home, so as to avoid lapses in service and extra re-start expenses. Check on personal items that might be at the photo shop, in a safe-deposit box, at a neighbor’s

house, on lay-away, or in a repair shop (e.g., shoe repair, jewelry store, small-appliance repair, or dressmaker). Make arrangements for transporting your plants and pets. Save the phone book from your former city residence for tying up loose ends or for future corre-

spondence. Transfer insurance policies or arrange for new policies. Gather all valuables, jewelry, important papers (birth certificates, deeds, documents) to take with

you personally. Pack an arrival kit of necessities just in case you arrive before the mover, if applicable. Purchase moving insurance. Your mover’s liability for lost or damaged goods will not equal their

replacement cost. Have valuable items appraised. Check with your attorney about your will, if crossing state lines. Ask for professional referrals if available (e.g., doctor, accountant, etc.)



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Tips on Having a Garage Sale 1. Allow plenty of time—three or four weeks—to prepare for the sale. 2. Choose a date that will not conflict with holidays. 3. Weekends are more convenient for more people than weekdays. 4. Your sale is likely to attract more people if you join together with neighbors in an effort to

have more merchandise. Some homeowners’ groups are sponsoring neighborhood sales that are proving popular!

5. Practical household goods are popular items; adult clothing has less appeal. 6. Merchandise your items attractively in neat, clean surroundings. 7. Cluster like items together; place the more desirable items in the back of the garage so

browsers are urged to look at other merchandise on their way to the most popular items. 8. All items should be clean, polished, and in good repair. 9. Locate your appliance table near an outlet so customers can try before they buy! 10. Be sure that there is adequate parking space and a place to load large items. 11. Have plenty of bags and boxes for packing and newspapers for wrapping glass items. 12. Place a classified ad in the local paper. Include 3-4 items for sale, directions, and other details. 13. Take advantage of free publicity on bulletin boards in grocery stores and other public places. 14. Provide directional signs to your property. 15. If your home is listed for sale, have flyers about your home available for people to take. 16. Visit other sales to form an idea on how to price things. Be prepared to bargain down your

prices. 17. Post a notice that all sales are final and payment must be cash. 18. Have plenty of change in a cash box that is kept in a protected spot. Keep a record of sales,

especially when there are several sellers. One recording method that is simple and efficient is to use small white stickers for prices. When an item is purchased, remove the sticker and place it next to the name of the seller on a piece of paper.

19. On a hot day, have ice water or lemonade available so people will stay longer, and on cold days serve hot chocolate.

20. Tell your real estate agent about some of the major items in your sale. She/he may have a client looking for just that thing! One person’s trash is another’s treasure!



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Tips on Packing 1. Use strong containers that are in good condition and can be secured tightly

with twine or strapping tape. These can usually be purchased from your moving company. Purchase special boxes for dishes, wardrobe, and other special items.

2. Label each box with its contents, which room it should go in, whether it is fragile, and whether it should be loaded last so as to be unloaded first.

3. Don’t load more than 50 pounds into any one box, and make sure that the weight is evenly distributed.

4. Cushion contents with newspaper or other packing material to prevent breakage. Use newsprint paper or tissue paper for items that might be soiled by newspaper. Towels and cloth napkins are great for wrapping fragile items.

5. Pack books tightly in small boxes. Alternate bindings and wrap valuable books separately.

6. Have your rugs and draperies cleaned before moving and leave them in their wrappings for easier handling.

7. Remove all breakables and liquids from drawers and pack them separately. Seal medicines and other containers to prevent leaking and pack them in a leak-proof bag or container.

8. Pack linens and clothing in drawers, but don’t overload them. 9. Carry all valuables with you. Do not pack jewelry, documents, coin or

stamp collections, or anything that will be difficult to replace. The contents of a safety deposit box can be moved for you by your bank.









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Moving With Children (Adapted from information at www.MoversGuide.com.)

If you think moving is hard on adults, imagine what it’s like for children. They’re starting over and trying to meet new friends while getting used to a new home, neighborhood, and school. Think about your children’s specific needs before, during, and after the transition and you’ll make a big difference in how your children feel about the move and how they adjust afterwards. BEFORE THE MOVE: PREPARING Give your children a chance to express their feelings, and be honest about your own feelings.

Children who have a chance to express themselves work through their doubts more easily. Help children compile a list of phone numbers and addresses of friends, relatives, and other

important people. Knowing they can stay in touch with these people will be reassuring. Take your children to your new home before you move and explore the new neighborhood and

town or city together. Try to line up some activities in which your child can participate after the move: a sports team,

music lessons, or a scouting troop. Not only will activities like these keep your children involved but they will help the kids feel like part of the group.

DURING THE MOVE: REMEMBERING WHAT’S IMPORTANT Stay as upbeat and calm as you can. Your own mood will impact your children’s moods. Involve your children in the packing. Older children can put their own belongings in boxes, and

children of all ages will enjoy decorating the boxes containing their things. Stick to your routines. Have meals at the same times you normally do. Don’t pack things that your children treasure. Take special blankets, favorite books, and other

prized items in the car or on the plane with you. Help your children say goodbye to the important people in their lives. For their friends, a party is a

fun way to celebrate the friendship. For many families, moving day means a long car trip or a cross-country flight. Prevent backseat

blues and airline angst by adding travel fun and games to your plans. See the next page for ideas. Allow your child to bring an album with pictures of their old home and friends. This will allow

them to express their feelings and provide you with a chance to reassure your child that it is natural to feel loss and initial discomfort with such a big change.

AFTER THE MOVE: GETTING SETTLED To make your new home seem more like home, hang your child’s or family portrait in a prominent

location or create a tabletop display of family photographs. Take pictures of the new home, neighborhood playmates, family members, and school. Start a new

family album to show there is fun and family togetherness available at the new home. Don’t spend too much time unpacking—at least not right away! In the first few days, take time to

enjoy your new home with your family. Take walks and check out local restaurants. Above all, listen. Be there when your children get home after the first day at their new schools, even if it means having to leave work early. Ask often how things are going, and take time to listen.



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Travel Fun and Games for Children Prevent backseat blues and airline angst by adding travel fun and games to your plans. Use the following suggestions to make your trip more fun for your kids and more enjoyable for you too. LITTLE SURPRISES Purchase several inexpensive toys before your trip. Give them to your children as surprises throughout the journey. A new toy adds fun and excitement to more dull portions of the journey. DOCUMENT THE TRIP Give your child a disposable camera and have him/her record the trip. Keep a travel journal or diary recording interesting places and adventures. Save ticket stubs and mementos in a scrapbook. TRIED-AND-TRUE TRAVEL TAKE-A-LONGS ♦ Travel versions of board games such as Connect Four, Battleship, or Checkers are easy choices. Travel

Magnadoodle and Etch-a-Sketch have received top marks from children around the country. ♦ Hand-held video games or even a laptop computer can provide hours of fun. Save your sanity and turn off

the sound. ♦ Exercise the mind with activity books filled with mazes, crosswords, and other puzzles. Quiz each other

with trivia cards or giggle as you work your way through a book of Mad Libs. REST-STOP RACES Bring a soccer ball or football for rest-stop fun. Running games like tag or footraces are a great way to spend some of that saved up energy. Schools, city parks, recreation areas, and fast-food restaurants with playgrounds are great places for kids to do a little more than stretch their legs. READ ALOUD AND SING ALONG Bring several books and take turns reading aloud in the car. Be expressive and entertaining. Sing-along cassette tapes can be fun for the whole family. Cast recordings of popular musicals as well as movie soundtracks are a great way to sing away the miles. MAP YOUR JOURNEY Learn about your destination and exciting places along the way. Plan rest stops at museums, historical sites, and other interesting places. Trace your route on the map, and look up interesting facts in a guidebook. SCAVENGER HUNTS Search roadside billboards and signs for the letters of the alphabet, in order. Make your own list of things to find: gas station, school, church, horses, cows, river, and anything else that you may find between your starting point and your destination. FUN AND GAMES Bring a deck of cards. Popular children’s card games include War, Rummy, and Go Fish. GET PLUGGED IN Children enjoy being read to, so bring a portable cassette player with headphones and some books on tape. Set the volume at a safe level, and don’t be surprised if they want to hear the same story over and over again.



5050

Moving Your Pets Cats and Dogs Cats and dogs can either be shipped by air or taken along in the car. If you are flying to your new destination, your cat or dog can ride in the baggage compartment. Your pet will need a health certificate from your vet. Call the airline in advance to find out about special boxes they may have. If you are going to make a container for your pet, make sure that the container complies with airline regulations. It is a good idea to put a piece of clothing with your scent in the animal’s box so he/she feels more at home. If you aren’t flying with your pet but are having it shipped by air, make sure that someone is on the other end to pick your pet up at the airport and take care of him/her until you arrive. The easiest way to care for your pet before your arrival is a kennel. Many kennels can take your pet several days before your move (keeping him/her safe and out of your way). Or you can take your pet to the airport and arrange to have a kennel on the other end pick him/her up and take care of him/her until you arrive. Think twice about taking your dog or cat with you on a long cross-country trip. Not only can animals get car sick, but being cooped up in a car all day can make them nervous and upset. They must be fed and have plenty to drink (make sure that you take along a water dish), they have to make “rest stops,” and they have to be on a leash to keep them from running off anytime the car door is opened. Some motels and hotels don’t allow pets. Others have special facilities for handling travelers’ pets. Call in advance and check out the available literature on hotels along your route. National chains usually publish such information. Smaller Animals Hamsters, birds, mice, and such can be transported in the family car fairly easily. Make sure that the animals have enough food and water in their cages and are out of drafts or extreme temperatures. Cover cages with a cloth to keep the pets quiet and restful. Fish It is not practical to move fish in their aquarium. A gallon of water weighs eight pounds. Plan on giving the fish away and restock the aquarium when you arrive at your new home. Your veterinarian and pet stores are also valuable sources of information.









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Moving Your House Plants You can take your plants with you when you move without harming them. Here are some tips: ♦ Call your local U.S. Department of Agriculture to check on regulations if moving from one state

to another. Many states have restrictions on certain kinds of plants to prevent importing bugs or pests that can destroy valuable cash crops in the state.

♦ A couple of weeks before you move, prune plants to facilitate packing. Consult a florist or a plant

book for instructions. ♦ A week before you move, put your plants in a black plastic bag. Prior to placing your plant in the

bag, place a bug/pest strip, conventional flea collar, or bug powder in the bag. Close the bag and place it in a cool area overnight. This will kill any pests on the plant or in the soil.

♦ The day before you move, put your plants in cardboard containers. Make sure that they are held in

place by dampened newspaper or packing paper. Use paper to cushion the leaves and place a final layer of wet paper on top to keep them moist. Water the plants normally in summer, a little less in winter.

♦ On the day of your move, set the boxes aside and mark “DO NOT LOAD” so they won’t be taken

on the moving van. ♦ On the day you leave, close boxes, punch air holes in the top, and load them in your car. ♦ When on the road, be careful where you park your car. Look for a shaded area in the summer and

a sunny spot in the winter. ♦ Unpack the plants as soon as you can after arriving. Remove plants through the bottom of the box

in order to avoid breaking their stems. Do not expose the plants to much sunlight at first. Let them get accustomed to more light gradually.

♦ If you must leave your plants behind, take cuttings. Put them in plastic bags with wet paper towels

around them.









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Service ProvidersService Providers to Accommodateto Accommodate

Your NeedsYour Needs


5353

AIR CONDITIONING/HEATINGAIR CONDITIONING/HEATING Del-Air Heating, Air Conditioning and Refrigeration, Inc. 407-847-COOL APPRAISERSAPPRAISERS Metts Appraisal Service Hugo Metts 407-865-6554 CARPET CLEANINGCARPET CLEANING Carpet Systems Plus 407-299-5458 HOME FURNISHINGSHOME FURNISHINGS Rooms To Go 407-438-6799 Robb & Stucky 407-682-3700 HOME INSPECTORSHOME INSPECTORS Weintz Building Inspection Services Tom Weintz 407-332-2469 INSURANCE SERVICESINSURANCE SERVICES Allstate Anna Regina-Alves 1-888-590-6838 LAWN SERVICE/LANDSCAPINGLAWN SERVICE/LANDSCAPING RV Henry Lawn Care Henry T. Alley 407-970-LAWN

MORTGAGE LENDERSMORTGAGE LENDERS Paramount Mortgage Stanley Ockwig Services 321-217-1827 Mortgage Solutions Cindy Hall 407-294-4707 PEST CONTROLPEST CONTROL Florida Pest Control & Chemical Company 407-896-6601 POOL CAREPOOL CARE Pinch A Penny 407-909-1806 REAL ESTATEREAL ESTATE Keller Williams Realty at the Lakes/Celebration The Orlando Avenue Top Team 407-962-4242 ROOFER/ROOF REPAIRROOFER/ROOF REPAIR DRN & G Roofing Rick 407-327-5636 SCREEN INSTALLATION/REPAIRSCREEN INSTALLATION/REPAIR Seminole Screening Bobby Robillard 407-971-9973 WINDOW COVERINGSWINDOW COVERINGS Interiors Plus by Design Cole 407-679-9077

Service Providers to Accommodate Your NeedsService Providers to Accommodate Your Needs








5454

GlossaryGlossary ofof

TermsTerms


5555

GLOSSARY OF TERMSGLOSSARY OF TERMS

Abstract of Title The summary of the public records relating to the ownership of a particular piece of land. It represents a short legal history of an individual piece of property from the time of the first recorded transfer to present. Acceptance Consent to an offer to enter into contract. Adjustable Rate Mortgage (ARM) A mortgage in which interest and payment rates vary periodically, based on a specific index, such as 30-year Treasury Bills or the Cost-of-Funds index. Adjustments Money credited or debited to either/both buyer and seller at closing, including real estate taxes, association fees, garbage fees, rents, etc. Agency A mutual-consent, legal relationship in which a seller or buyer engages a broker-agent in the sale or purchase of property. Agent/REALTOR® A licensed person who represents the seller (and/or buyer) and who provides market assessment, offers sales or buying strategy, recommends various services and sources important to the seller or buyer, is a member of the National Association of REALTORS (NAR), and subscribes to NAR’s strict Code of Ethics. Amortization A method by which monthly mortgage payments are equalized over the life of a loan, despite the fact that the proportion of principal to interest changes. Annual Percentage Rate (APR) The total finance charge (interest, loan fees, points) expressed as a percentage of the mortgage amount. Appraisal A professional and unbiased written opinion of a property’s value that is based on recent, comparable sales; quality of construction and current condition; and style of architecture. Appreciation Increase in value to any cause. Asking Price The price at which a property has been placed on the market for sale. Assessed Value The established value of a property for tax-assessment purposes, which may or may not reflect market value. Assumption of Mortgage The taking of title to property by a grantee, wherein he or she assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property, becoming a co-guarantor for the payment of a mortgage or deed for trust note.


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Balloon Mortgage A short-term mortgage, generally at a fixed rate of interest, to be paid back in predetermined, equal monthly payments with a large final payment for the balance of the loan to be paid at the end of the term. Broker A person licensed to represent home buyers or sellers for a contracted fee. Brokers manage real estate offices and employ licensed agents to sell properties. Bridge Loan A short-term mortgage made until a longer-term loan can be made; it’s sometimes used when a person needs money to build or purchase a home before the present one has been sold. Building Codes State and local laws that regulate the construction of new property and the rehabilitation of existing property. Cap A limit on the total amount an interest rate can be increased in a specified time and over the lifetime of an adjustable-rate mortgage. Capital Gains The taxable profit derived from the sale of a capital asset. A gain is the difference between the sale price and the basis of the property, after making appropriate adjustments for closing costs, fix-up expenses, capital improvements, allowable depreciation, etc. Closing The final settlement at which time the title is transferred from seller to buyer, accounts are settled, new mortgages are signed, and all fees and expenses are dispersed or satisfied. Closing Costs All fees, taxes, charges, commissions, surveys, lender fees, inspection fees, and other costs paid by the buyer and/or seller at the closing. Commission A previously agreed upon percentage of the home’s sale price paid to the listing and selling agent(s). Comparables Similar properties in type, size, price, and amenities that have sold recently, been adjusted, and are used for comparison in the appraisal report. Condominium (Condo) Real estate ownership in which a property owner has title to a specific unit but shared interest in common areas. Contingency A condition that must be satisfied before a contract is binding. Contract An agreement to do or not to do a certain thing.

GLOSSARY OF TERMS, continuedGLOSSARY OF TERMS, continued


5757

Contract for Deed A contract ordinarily used in connection with the sale of a property in cases where the seller does not wish to convey title until all or a certain part of the purchase price is paid by the buyer. Contract of Title A summary or digest of the conveyances, transfers, and any other facts relied on as evidence of title together with any other elements or records that may affect the marketability of the title. Conventional Mortgage Most popular home financing form not insured by Federal Housing Administration (FHA) or guaranteed by Veteran’s Affairs (VA). Available from many lenders at varying rates, terms, and conditions. Conversion Clause Clause in an ARM permitting conversion from an adjustable loan to a fixed-rate loan. Counteroffer An offer made by a buyer or seller to the other party, responding to the asking price or a subsequent adjustment to that price to complete a purchase of sale. CRV Certificate of Reasonable Value. A document of appraisal issued by VA establishing their opinion of the maximum value. Curb Appeal A term used by REALTORS® that encompasses all that a buyer sees from the street that may induce the buyer to look more closely at the property. Deed A legal “instrument” that conveys the title to a property from seller to buyer. Disclosure Laws State and federal regulations that require sellers to disclose such conditions as whether a house is located in a flood plain or if there are any known defects that would affect the value of the property. Discount Points Additional charges made by a lender at the time a loan is made. Points are measured as a percent of the loan, with each point equal to one percent. These additional interest charges are paid at the time a loan is closed to increase the rate of return to the lender so as to approximate the market level. Down Payment The buyer and lender determine the down payment requirements during the pre-qualification process. The down payment is usually expressed as a percentage of the purchase price: e.g., 0%, 5%, 10%, 20%, 25%, 30%. Earnest Money (Escrow Deposit) Money paid by the buyer at the time an official offer to purchase is submitted to the seller, intended to demonstrate the good faith of the buyer to complete the purchase. Earnest money is applied against the purchase price when the sale is finalized. Under certain conditions, the earnest money may be forfeited if the buyer fails to complete the purchase under the terms of the sales contract.



5858

Easement A right to use the land of another. Encroachment A condition that limits the interest in a title to property such as a mortgage, deed restrictions, easements, unpaid taxes, etc. Equity The difference between the sale price of a property and the mortgage balance owed on the property. Equity Mortgage A mortgage based on the borrower’s equity in their home rather than on their credit worthiness. Escrow Account A third-party account used to retain funds, including the property owner’s real estate taxes, the buyer’s earnest money, or hazard insurance premiums. Exchange The trading of equity in a piece of property for equity in another property. Fair Market Account The highest price an informed buyer will pay, assuming there is no unusual pressure to complete the purchase. Fannie Mae The Federal National Mortgage Association (FNMA) is a privately owned corporation created by congress to buy mortgage notes from local lenders and provide guidelines for most lenders to use to qualify borrowers. Fee Appraisal The act or process of estimating values of real estate or any interest therein for a fee. FHA-Insured Mortgage A loan made by a local lending institution and insured by the Federal Housing Administration, whereas the buyer pays the premium. Firm Commitment A lender’s agreement to make a loan to a specific borrower on a specific property. An FHA or Private Mortgage Insurance (PMI) agreement to insure a loan on a specific property, with a designed purchaser. Fixed-Rate Mortgage A mortgage with a set interest rate for the entire term of the mortgage. FMHA Loan A loan insured by the Federal Home Loan Mortgage Corporation (FHLMC), a federally controlled and operated corporation to support the secondary-mortgage market. Foreclosure A legal procedure whereby mortgaged property is seized and sold as payment for a debt in the event of default.



5959

Freddie Mac The nickname for Federal Home Loan Mortgage Corporation (FHLMC), Freddie Mac is a federally controlled and operated corporation to support the secondary-mortgage market. It purchases and sells residential conventional home mortgages. Graduated-Payment Mortgage This mortgage offers low initial monthly payments that increase at a predetermined rate and then cap at a final level for the duration of the mortgage. Home Inspection A formal survey of a home’s structure, mechanical systems, and overall condition, generally performed by an inspector or contractor. Home Warranty A policy available to the buyer or seller as insurance against unanticipated home-repair costs. Homeowner’s Policy A hazard insurance policy covering, at the very least, the appraised value of a house and property. Inspection Contingency A written stipulation contained in an “offer to buy” that makes the sales contract predicated upon the findings of a professional home inspector. Installment Debts Long-term debts that usually extend for more than one month. Interest The predetermined charge or fee paid to a lender by the borrower for the use of monies loaned. Investor The holder of a mortgage or the permanent lender. Any person or institution that invests in mortgages. Joint Tenancy Joint ownership by two or more persons with right of survivorship; all joint tenants own equal interests and have equal rights in the property. Land Contract A contract ordinarily used in connection with the sale of property in cases where the seller does not wish to convey title until all or a certain part of the purchase price is paid by the buyer. Lease Purchase Agreement The buyer makes a deposit for the future purchase of property with the right to lease the property in the interim. Lien A legal claim against a property that must be paid when the property is sold. Listing A contract through which a seller agrees to terms and fees with an agent who will sell the property to a buyer.



6060

Loan Commitment A written promise by a lender to make a loan under certain terms and conditions. These include interest rate, length of loan, lender fees, annual percentage rate, mortgage and hazard insurance, and other special requirements. Loan-to-Value Ratio The relationship between the amount of a home mortgage and the total value of the property. Lock-In Rate A commitment made by lenders on a mortgage loan to “lock in” an interest rate pending mortgage approval. Lock-in periods vary. Market Price The actual price at which a property is sold. Market Value The price that is established for a property by existing economic conditions, property location, size, etc. Marketable Title Merchantable title, free and clear of objectionable liens or encumbrances. Mold Mold is a superficial and often woolly growth produced on damp or decaying organic matter or on living organisms. See www.epa.gov/iag/molds/moldguide.html for a guide that provides information and guidance for homeowners and renters on how to clean up residential mold problems. Mortgage A legal claim received by the lender on a property as security for the loan made to a buyer. Mortgagee The lender of money or the receiver of the mortgage document. Mortgage Broker An independent, third-party, licensed broker who arranges loan transactions between lenders and borrowers by facilitating the application and approval process. Mortgage Insurance Premium (MIP) The consideration paid by a mortgagor for mortgage insurance either to the FHA or a PMI company. On an FHA loan, the payment is one half of one percent annually on the declined balance of the mortgage. It is a part of the regular monthly payment and is used by the FHA to meet operating expenses and provide loss reserves. Mortgagor The borrower of money or the giver of the mortgage document.



6161

Multiple Listing Service (MLS) A system through which participating brokers agree to share commissions on a predetermined percentage split on the sale of properties listed on the system. Origination Fee This fee is a supplemental fee paid buy buyers to lenders, usually stated as a percentage or as points. Personal Property Any property which is not real property: e.g., money, savings accounts, appliances, cars, boats, etc. PITI Common real estate acronym meaning Principal, Interest, Taxes, Insurance. Point A single percent of the loan principal, often charged by the lender in addition to various fees and interest. Prepayment When a borrower pays off an entire mortgage before the scheduled payoff date. Prepayment Penalty A fee included in the mortgage agreement that is required of the borrower in the event the loan is paid of before the due date. Look for a clause that says, “There shall be no prepayment penalty.” Prequalification An informal estimate of the “financing potential” of a prospective borrower. Principal The amount of money borrowed against which interest and possibly fees will be charged. OR: One of the parties to a contract. Private Mortgage Insurance (PMI) Insurance issued to a lender by a private company to protect the lender against loss on a defaulted mortgage loan. Its use is usually limited to loans with high loan-to-value ratios. The borrower pays the premiums. Promissory Note A written contract that contains a promise to pay a definite amount of money at a specific time in the future. Pro-ration Proportionate division of expenses based on days or time occupied or used by the seller and/or buyer. Purchase Agreement A written, legally binding contractual agreement between a buyer and a seller for the purchase of real estate. Qualification Ability of a borrower to satisfy a lender’s mortgage-approval requirements.



6262

Radon A colorless, odorless gas formed by the breakdown of uranium in sub-soils. It can enter a house through cracks in the foundation or in water and is considered to be a hazard. Your REALTOR® can supply a radon brochure. Real Property Any land and whatever by nature or artificial annexation is a part of it. Referral The recommendation by one agent of a potential buyer and/or seller to another agent either locally or long-distance. Refinancing The process of applying for a new mortgage to gain better terms or use of equity. Relocation Specialists A firm or person specializing in advising buyers or sellers on relocating to different and/or new communities. There are designations for REALTORS that indicate additional educational training. Look for the Certified Relocation Professional (CRP) designation. RESPA Statement The Real Estate Settlement Procedures Act requires a precise listing of all closing costs for both sellers and buyers. Return on Investment (ROI) The profit gained as the result of money spent on an improvement or addition to a home or property. Settlement Disclosure Statement A statement or list providing a complete breakdown of costs involved in finalizing a real estate transaction prepared by the lender’s agent prior to closing and reviewed at closing by the buyer and seller. Survey The process by which a parcel of land is measured and its area ascertained. Title companies study the survey to check for encroachments. Title A legal document that defines the property, right of ownership, and possession. Title Defect An outstanding claim or encumbrance on property that affects marketability. Title Insurance An insurance policy that protects the buyer against errors, omissions, or any defects in the title. Title Search A highly detailed search of the document history of a property title for the purpose of identifying any and all legal encumbrances to the property prior to title transfer to a new owner.



6363

VA Mortgage The Department of Veterans Affairs has made guaranteed mortgages available through banks and other lending institutions to active military personnel, veterans, or spouses of veterans who died of service-related injuries. Variance A special suspension of zoning laws to allow the use of property in a manner not in accord with existing laws. Walk-Through Inspection The final inspection by the buyers, usually in the company of the buyers’ real estate sales agent, to ensure that all conditions noted in the offer to purchase and all seller-related contingencies have been met. This inspection is most often completed immediately prior to the closing and after the seller has vacated the premises. Zoning Virtually all local communities have established specific restrictions for land use, new construction, and remodeling activity. These are available to you through a local regulatory department such as the Building Inspector’s Department or office or the Planning and Zoning Board.


Anytime you have a real estate question, remember... Always Call

The Orlando Avenue Top TeamThe Orlando Avenue Top Team

407407--962962--42424242

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6464


Anytime you have a real estate question, remember... Always Call


407407--962962--42424242

We are here to help!





